PNE PCB Berhad (Company No V) (Incorporated in Malaysia) Financial Report (Announcement) 31 March 2017

Transcription

1 (Incorporated in Malaysia) Financial Report (Announcement) 31 March

2 Company No V (Incorporated In Malaysia) CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH (Unaudited) As at 31 March RM'000 (Audited) As at 30 September RM'000 ASSETS Non-current assets Property, plant and equipment 31,584 31,905 Investment in quoted shares 1,274 1,231 Deferred tax asset 1,900 1,900 Fixed deposits with licensed bank 2, Total non-current assets 37,308 35,574 Current assets Inventories 15,541 10,859 Trade receivables 29,633 34,387 Other receivables 5,793 6,637 Tax recoverable Cash and cash equivalents 12,431 10,633 Total current assets 63,413 62,531 Total assets 100,721 98,105 EQUITY AND LIABILITIES EQUITY Share capital 26,299 26,299 Reserves 44,001 40,907 Total equity 70,300 67,206 Current liabilities Trade payables 25,900 26,986 Other payables 4,521 3,758 Amount due to a director - - Tax payable Total current liabilities 30,421 30,899 Total liabilities 30,421 30,899 Total equity and liabilities 100,721 98,105 Net assets per share of RM 0.20 each (The condensed consolidated statement of financial position should be read in conjunction with the audited financial statements for the financial year ended 30 September and accompanying explanatory notes attached to the interim financial statements.)

3 Company No V (Incorporated In Malaysia) CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD ENDED 31 MARCH INDIVIDUAL QUARTER Preceding Year Corresponding Quarter CUMULATIVE QUARTER Preceding Year Current Year Corresponding to date Period Current Quarter 31 March 31 March16 31 March 31 March RM'000 RM'000 RM'000 RM'000 Revenue 23,510 22,285 51,438 42,330 Cost of sales (20,592) (19,734) (44,267) (36,315) Gross profit 2,918 2,551 7,171 6,015 Other income , Distribution expenses (473) 0 (1,076) (1,367) Administration expenses (2,790) (2,437) (5,301) (4,519) (Loss) / Profit before tax , Tax (expense)/income (3) (7) (7) (11) (Loss) / Profit for the financial period , Other comprehensive income, net of tax - Foreign currencies translation (450) (6,695) 1,209 (7,415) Total comprehensive (expense)/income for the financial period (235) (6,588) 3,094 (7,215) Earnings/(Loss) per share (sen) - Basic/Diluted (The condensed consolidated statement of comprehensive income should be read in conjunction with the audited financial statements for the financial year ended 30 September and accompanying explanatory notes attached to the interim financial statements.)

4 Company No V (Incorporated In Malaysia) CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW FOR THE PERIOD ENDED 31 MARCH Current Period ended 31 March RM'000 Current Period ended 31 March RM'000 OPERATING ACTIVITIES Profit before tax 1, Adjustments for: Depreciation of property, plant and equipment 1, Reversal of impairment on quoted shares (43) 120 Gain on disposal of quoted shares 0 (14) Gross dividends from quoted shares in Malaysia (1) 0 Interest income (5) (15) Unrealised loss on foreign exchange Gain on disposal of property, plant and equipment (100) 0 Operating profit before working capital changes 3, Changes in working capital: Inventories (4,682) (325) Receivables 5,597 (1,260) Payables (1,115) 3,527 Cash generated from operations 3,191 2,842 Income tax paid (7) (11) Net cash generated from operating activities 3,184 2,831 INVESTING ACTIVITIES Interest received 5 15 Dividends received from quoted shares 1 0 Dividends received 0 0 Purchase of property, plant and equipment (688) (324) Proceeds from disposal of property, plant and equipment Net cash used in investing activities (582) (279) CASH AND CASH EQUIVALENTS Net changes 2,602 2,552 Effect of exchange rate changes 1,209 (6,783) At beginning of the financial period 11,170 15,351 At end of the financial period 14,981 11,120 Cash and cash equivalents comprise of: - Cash and bank balances 12,431 8,684 - Fixed deposits with licensed banks** 2,550 2,436 14,981 11,120 ** Fixed deposits with licensed banks have been pledged to licensed banks for banking facilities granted to the Group (The condensed consolidated statement of cash flow should be read in conjunction with the audited financial statements for the financial year ended 30 September and accompanying explanatory notes attached to the interim financial statements.)

5 Company No V (Incorporated In Malaysia) CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 31 MARCH Attributable to the owners of the Company Non-distributable Share capital Share premium Fair value reserve Exchange fluctuation reserve (Accumulated losses)/retained earnings Total equity RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 Balance as at 1 October 26, ,902 31,232 67,206 Profit for the financial period ,885 1,885 Other comprehensive (expense)/income for the financial period, net of tax: - Exchange differences on translation of the financial statements of foreign subsidiaries ,209 1,209 Total comprehensive (expense)/income for the financial period ,209 1,885 3,094 Balance at 31 March 26, ,111 33,117 70,300 (The condensed consolidated statement of changes in equity should be read in conjunction with the audited financial statements for the financial year ended 30 September and accompanying explanatory notes attached to the interim financial statements.)

6 Company No V (Incorporated In Malaysia) CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 31 MARCH (continued) Attributable to the owners of the Company Non-distributable Share capital Share premium Fair value reserve Exchange fluctuation reserve (Accumulated losses)/retained earnings Total equity RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 Balance as at 1 October , ,500 (11,408) 66,614 Profit for the financial period Other comprehensive (expense)/income for the financial period, net of tax: - Exchange differences on translation of the financial statements of foreign subsidiaries (7,415) 0 (7,415) Total comprehensive (expense)/income for the financial period (7,415) 200 (7,215) Transaction with owners: - Par value reduction (52,599) , Issuance of bonus shares 13, (13,150) 0 Balance at 31 March 26, ,085 28,241 59,399 (The condensed consolidated statement of changes in equity should be read in conjunction with the audited financial statements for the financial year ended 30 September and accompanying explanatory notes attached to the interim financial statements.)

7 (Incorporated in Malaysia) Notes to the condensed interim financial statements 1. Basis of preparation (a) Statement of compliance These condensed consolidated interim financial statements have been prepared in accordance with the applicable disclosure provisions of the Listing Requirements of the Bursa Malaysia Securities Berhad and MFRS 134, Interim Financial Reporting in Malaysia and with IAS 34, Interim Financial Reporting. They do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group as at and for the year ended 30 September. 2. Significant accounting policies The significant accounting policies and methods of computation adopted by the Group in these interim financial statements are consistent with those adopted in the audited financial statements for the financial year ended 30 September. 3. Property, plant and equipment The valuations of land and buildings have been brought forward, without amendment from previous annual report. 4. Changes in composition of the Group During the quarter under review, there were no changes in the composition of the Group. 5. Dividends No dividend has been paid and declared by the company since the end of the previous financial year. 6. Seasonal or cyclical factors The Group s revenue and profits are not materially affected by seasonal or cyclical factors.

8 (Incorporated in Malaysia) 7. Segment information Segment information is presented in respect of the Group s geographical segments. Intersegment pricing is determined based on a negotiated basis. Revenue 6 months ended 31 March Profit/(Loss) before tax 6 months ended 31 March Malaysia Singapore People s Republic of China Inter-segment elimination 9, ,678 51,591 (153) 9, ,057 42,478 (148) 51,438 42,330 (17) (427) 2,337 1,893 (1,099) (591) (370) Segment result 794 (33) Other income 1, Changes in contingent liabilities and contingent assets 1, There were no contingent liabilities and contingent assets since the last annual balance sheet date. 9. Debt and equity securities There were no issuance, cancellations, repurchase, resale and repayments of debt and equity securities for the period under review. 10. Related parties Key management personnel compensation Directors: - Fees - Remuneration 6 months ended 31 March

9 (Incorporated in Malaysia) 10. Related parties (continued) Transactions with related parties of the Group Companies in which certain shareholders have interests 6 months ended 31 March Sales 2,078 1, Events subsequent to the balance sheet date There are no material events subsequent to the end of the interim period that have not been reflected in the financial statements for the interim period under review. 12. Audit qualification The audit report of the Group for the preceding annual financial statements was not subject to any audit qualification. 13. Unusual items affecting the assets, liabilities, equity, net income or cash flows There are no unusual items affecting the assets, liabilities, equity, net income or cash flows of the Group for the current quarter-to-date. 14. Material changes in estimates There are no material changes in estimates for the current quarter-to-date.

10 (Incorporated in Malaysia) Interim Financial Report 31 March Additional information required by the Bursa Malaysia Securities Berhad s Listing Requirements

11 (Incorporated in Malaysia) Additional information required by the Bursa Malaysia s Listing Requirements 1. Review of performance The Group recorded revenue of RM million and profit before tax ( PBT ) of RM million as compared to revenue of RM million and PBT of RM million in the corresponding previous financial year. This higher revenue and profit resulted from an expansion in the client base. 2. Variation of results against preceding quarter For the quarter under review, the Group recorded a profit before tax ( PBT ) of RM million as compared to a PBT of RM million in the previous quarter ended 31 December. The reduction in revenue from RM million to RM million, as well as unrealized foreign exchange losses of RM million contributed to the LBT for the current period under review. 3. Current year prospects It is expected that for the current financial year ended 30 September, the Group will be able to achieve marginal profit through constant improvement on the costing and production efficiency. 4. Profit forecast Not applicable. 5. Tax expense 6 months ended 31 March 3 months ended 31 March Tax expense Malaysian Tax -Current period (7) (11) (3) (7) 6. Status of corporate proposal announced On behalf of the Board of Directors of PNE ( BOD ), Mercury Securities Sdn Bhd ( Mercury ) had on 23 October 2015 announced to Bursa Malaysia Securities Berhad ( Bursa Securities ) that the Company would like to undertake the following Proposals; 1) Par value reduction via the cancellation of RM0.80 from the par value of every existing ordinary share of RM1.00 each in the issued and paid-up share capital of the company pursuant to Section 64 the Companies Act, 1965 ( Act ) ( Proposed Par Value Reduction );

12 (Incorporated in Malaysia 6. Status of corporate proposal announced (continued) 2) Bonus issue of up to 65,748,500 new ordinary shares of RM0.20 each in PNE (after the Proposed Par Value Reduction) ( Bonus Shares ) on the basis of one (1) Bonus Share for every one (1) existing Share held by entitled shareholders of the company ( Entitled Shareholders ) on an entitlement date to be determined ( Bonus Entitlement Date ) ( Proposed Bonus Issue ); 3) Renounceable rights issue of up to 262,994,000 new Shares ( Rights Shares ) together with up to 197,245,500 free warrants ( Warrants ) on the basis of four (4) Rights Shares together with three (3) Warrants for every two (2) existing Shares held by the Entitled Shareholders on an entitlement date to be determined (after the Proposed Bonus Issue) ( Rights Entitlement Date ) ( Proposed Rights Issue with Warrants ); 4) Establishment of an employee share option scheme ( ESOS or Scheme ) involving up to 15% of the issued and paid-up share capital of PNE for eligible Directors and employees of the company and its subsidiaries ( Eligible Persons ) ( Group or PNE Group ) ( Proposed ESOS ); 5) increase in the authorised share capital of PNE from RM100,000,000 comprising 100,000,000 ordinary shares of RM1.00 each to RM200,000,000 comprising 1,000,000,000 ordinary shares of RM0.20 each ( Proposed Increase in Authorised Share Capital ); and 6) amendments to the Memorandum and Articles of Association of the company ( Proposed Amendments ). Mercury had also on 26 November 2015 announced on behalf of the BOD that an approval for the Proposals has been obtained from Bursa Securities vide its letter dated 25 November On 19 January, Mercury announced on behalf of the BOD that the High Court had on 19 January granted an order confirming the Proposed Par Value Reduction. Mercury further announced on 22 January that this sealed Court Order dated 19 January was lodged with the Companies Commission of Malaysia, making the Proposed Par Value Reduction effective on 22 January. On 12 February, Mercury announced on behalf of the BOD that the issuance, listing and quotation of 65,748,500 Bonus Shares on the Main Market of Bursa Securities was completed. On 9 November, Mercury announced on behalf of the BOD that PNE has obtained the approval of Bursa Securities vide its letter dated 8 November for an extension of time of 6 months from 25 November up to 25 May, for PNE to implement and complete the Rights Issue with Warrants. As at this date of this report, the Rights Shares and ESOS have not yet been completed. 7. Borrowing and debt securities There are neither borrowings nor debt securities at the date of this quarterly report. 8. Changes in material litigation There is no material litigation as at the date of this quarterly report.

13 (Incorporated in Malaysia 9. Dividends No dividend has been paid and declared by the Company since the end of the previous financial year. 10. Earnings / (loss) per ordinary share (a) Basic earnings per share For the purpose of calculating basic earnings per share:- (i) The amount used as the numerator is the profit after tax of RM million attributable to ordinary shareholders for the current quarter and RM million for the 6 months ended 31 March. (ii) The weighted average number of ordinary shares used as the denominator for the current quarter is 131,497,000 and for the financial year to date is 131,497,000. (b) Diluted earnings per share. Not applicable. 11. Capital commitments There are no capital commitments contracted which is not provided for as at the date of this quarterly report. 12. Realised and unrealised profits The breakdown of retained profits into realized and unrealized profits as at the reporting period as follows: Total retained profits / (accumulated losses) - Realised - Unrealised 20,914 11,930 20,327 8,509 32,844 28,836 Less: Consolidation adjustments Total accumulated profits 33,117 28,241

14 (Incorporated in Malaysia) 13. Notes to the condensed consolidated statement of comprehensive income Profit / (Loss) before tax is arrived after charging / (crediting) the following items: Depreciation Interest income Gain on disposal of property, plant and equipment Reversal of impairment on quoted shares Foreign exchange loss - Unrealised 3 months Ended (5) (100) (18) 889 Year To Date ,009 (5) (100) (43) 639